online store tax question

[ChickenSwartz]

Are you taxed based on where your billing address is or your shipping address?
Thanks

 

[WildCowboy]

Sales taxes are based on the shipping address.

 

[Fearless Leader]

why? most states are within a percent of each other.

 

[WildCowboy]

why? most states are within a percent of each other.

There are a number of states without any sales taxes. Regardless, the point is that sales taxes are applied based on where the item is intended to be used. The simplest way of determining this is the shipping address. It's not always true that it's where the item will be used, but it's a decent system that's easy to administer.